Chipotle Hixson, TN | Chattanooga MSA
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This property is listed in conjunction with Tennessee-licensed real estate broker Kabat Real Estate Solutions. (Lizz Kabat, TN License #258073)
FE ATURIN G "CHIP OTL ANE " APP - BA SED D RIVE-THRU
OFFERING MEMORANDUM
Chipotle
Hixson, TN | Chattanooga MSA
www.preservewestcapital.com
TABLE OF CONTENTS
PROPERT Y HIGHLIGHTS 1 AERIALS 5
PROPERT Y INFORMATION 2 ABOUT THE AREA 7
TENANT INFORMATION 3 DEMOGRAPHICS 9
SITE PL AN 4
Putnam Daily
Disclaimer MGM Capital Corp dba Preserve West Capital (“Broker”) has been retained on an exclusive basis to market the property
described herein (“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute Partner
the enclosed information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed
financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of
415.445.5107
intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and putnam@preservewc.com
make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, CA RE License #01750064
you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price,
terms, ability to close the transaction and such other matters as the Seller deems appropriate.
Vahe Nokhoudian
The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition Associate
of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person
without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the
415.445.5122
information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller vahe@preservewc.com
and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation CA RE License #01963342
and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries,
members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such
pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must Michael Maffia
independently confirm the accuracy of the projections contained in the pro forma. Managing Partner
Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, 415.445.5144
to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers mike@preservewc.com
a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a
CA RE License #01340853
purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with
respect thereto.
Lizz Kabat
Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.
Kabat Real Estate Solutions
615.410.1114
lizz@kabatres.com
www.preservewestcapital.com TN RE License #258073
PROPERT Y HIGHLIGHTS
90-Room TownePlace Suites
(Early 2022 Completion)
• New 15-Year Absolute NNN Lease to Chipotle (NYSE: CMG) • Highly Functional Footprint Featuring “Chipotlane” Drive-
Thru Component
- Scheduled 10% Rental Escalations Every 5 Years
- Contactless App-Based Ordering Ideal for Pandemic
- No Landlord Maintenance Obligations Precautions
• Excellent Access and Visibility Along Highway 153 Retail • Robust Demographics in Surrounding Area
Corridor – 50,023 AADT
- Population of 91,509 within 5 Mile Radius
- Nearby Anchor Tenants Include Target, Walmart, ALDI,
TJ Maxx, CVS, Walgreens, & More - Average Household Income of $80,881 within 3 Miles
of Site
• Pandemic-Resistant Use Well-Adapted to Drive-Thru &
Carry Out Business • Approximately 7 Miles from Downtown Chattanooga
PRESERVE WEST CAPITAL | 1
PROPERT Y INFORMATION
Location PRICE
The property is located at 5248 Highway 153 in Hixson, Tennessee.
Lot Size
$3,023,000
Approximately 0.64 acres or 27,878 square feet.
4.00% Return
Improvements
Construction was completed in March 2021 of a 2,325 square foot retail building
featuring a drive-thru component and outdoor dining patio area for Chipotle.
Annual Rent
Years Rent Return
Parking
There is ample parking available on site. 1-5 $120,900 4.00%
6-10 $132,990 4.40%
Lease 11-15 $146,289 4.84%
Leased to Chipotle Mexican Grill of Colorado, LLC and guaranteed by Chipotle
Mexican Grill, Inc. for fifteen years from an estimated rent commencement date 16-20 (Option 1) $160,913 5.32%
of July 13, 2021 through July 31, 2036 at an initial annual rent of $120,900. There
are three (3) five-year options to renew the lease. Rent is to increase by 10% in 21-25 (Option 2) $177,002 5.86%
years 6, 11, and at the start of each option period. The lease is net with tenant
responsible for all taxes, insurance, and maintenance. 26-30 (Option 3) $194,719 6.44%
Financing
This property will be delivered free and clear of permanent financing.
PRESERVE WEST CAPITAL | 2
ABOUT THE TENANT
Chipotle Mexican Grill, Inc. (NYSE: CMG) operates a chain of fast-
casual Mexican restaurants serving burritos, tacos, burrito bowls, and
salads. The company prepares the majority of its ingredients on site,
and is set apart by its use of high-quality natural ingredients and fresh
produce. The company has expanded its footprint dramatically in
recent years, with more than 2,480 locations nationwide; because the
company does not franchise, all locations are corporate stores. The
chain’s focus on food quality and distinctive interior design provides an
experience that is more in line with a full service restaurant, coupled
with the speed and convenience of fast food.
In 2019, Chipotle introduced their new “Chipotlane” drive-thru
concept, allowing customers to place orders via the Chipotle app or
website to be picked up at the “Chipotlane” without leaving their cars.
Chipotlanes are expected to be included in more than 60% of new
Chipotle restaurants. Despite stay-at-home orders in recent months,
Chipotle successfully navigated the first quarter with digital sales
growing more than 80% year over year.
With the success of digital sales, Chipotle has unveiled a new
restaurant concept, “Chipotle Digital Kitchen.” The concept will allow
Chipotle to build on its growing digital sales while entering more urban
and non-traditional venues that would not otherwise support a full-
size restaurant. These locations will service only pick-up and delivery
via app-based or third party orders as well as catering.
For 2020, the company reported revenue of $5.98 billion, net income
of $355.8 million, and total stockholder equity of $2.02 billion.
PRESERVE WEST CAPITAL | 3
SITE PLAN
Future
Development
2,325 SF
DO NOT ENTER
MONUMENT
SIGN
AERIAL NORTH VIEW
Hixson Pike
NORTHGATE MALL
90-Room TownePlace Suites
(Early 2022 Completion)
T)
AAD
0 23
(50,
AERIAL SOUTH VIEW
Chattanooga
(~7 Miles)
kw y
Dupont P
(50,
023
AAD
T)
90-Room TownePlace Suites
(Early 2022 Completion)ABOUT THE AREA
General Overview
Chattanooga, Tennessee (population 177,571) is the seat of Hamilton
County and the fourth-largest city in Tennessee. Centrally located 120
miles northwest of Atlanta, 120 miles southwest of Knoxville, 135 miles
southeast of Nashville, 120 miles northeast of Huntsville, and 148 miles
northeast of Birmingham, the city is a transit hub served by multiple railroads
and interstate highways as well as the Tennessee River. Interstate 75, a
north-west arterial stretching from southern Florida to northern Michigan,
Interstate 24, which links Illinois, Kentucky, Tennessee, and Georgia, and
Interstate 59, connecting Louisiana, Mississippi, Alabama, and Georgia all
provide road transportation to the Chattanooga area, linking the region to
major consumer markets throughout Deep South, Midwest, and Northeast.
More than 131 million people live within one day’s drive of the city, one-third
of the U.S. population. The Chattanooga Metropolitan Airport provides air
transportation to the region, with four major consumer airlines and one-
stop service to Europe. The city is home to the University of Tennessee at
Chattanooga, the second largest campus in the University of Tennessee
system with an enrollment of more than 11,700.
SITE Major components of the city’s diverse $32.6 billion economy include
advanced manufacturing, automotive production, health services, textiles,
transportation and logistics, and food and beverage production. Notable
businesses in the city include Access America Transport, BlueCross
BlueShield of Tennessee, CBL & Associates, Chattem, Coker Tire,
Covenant Transport, Double Cola, CraftWorks Restaurants & Breweries,
Luken Communications, Miller & Marten, Reliance Partners, Rock/Creek,
Tricycle Inc, and Unum. In addition, Cigna, AT&T, T-Mobile, UBS, Amazon,
DuPont, Invista, Komatsu, Ferrara Candy Company, Alco Chemical, Colonial
Pipeline, Mars Inc., McKee Foods, and the William Wrigley Jr. Company all
have significant manufacturing or administrative presences in the city.
The Chattanooga Coca-Cola Bottling Company, founded in 1899, was the
world’s first Coca-Cola bottler and continues to operate today. In May 2011,
Volkswagen opened its first U.S. auto plant in more than three decades in
the city, which now serves as the company’s North American manufacturing
headquarters. The $1 billion facility employs more than 2,700 and is
expected to employ more than 2,200 additional workers within the next few
years. The city is also home to several business incubators and numerous
successful start-ups, including Branch Technology, which produces the
largest 3-D printer in the world. Businesses based in the region benefit from
low operating costs, Foreign Trade Zone opportunities, a highly educated
workforce, and one of the lowest per-capita tax burdens in the nation.ABOUT THE AREA
Site Information
The subject property is prominently situated with
excellent access and visibility within the Highway
153 retail corridor (50,023 AADT). The site benefits
from robust demographics with a population of
91,509 within a 5 mile radius. Average household
income within 3 miles of the site is $80,881.
The property benefits from a strategic retail location
SITE in close proximity to shopping centers, employers,
and major retail tenants. Nearby retail centers
include Northgate Mall, with tenants including TJ
Maxx, Belk, ULTA, Ross, and more; NorthTowne
Center, featuring Hobby Lobby, Ashley Homestore
Outlet, and Dollar Tree; Gadd Crossing shopping
center, anchored by ALDI; Towne Center North,
anchored by Target; and Oak Park Towne Center,
featuring Walmart and Marshalls. Other major
retail tenants in the surrounding area include
CVS, Walgreens, The Home Depot, Lowe’s Home
Improvement, and more.DEMOGRAPHICS
5248 Highway 153 | Hixson, TN 37343
Major Employers # of
in Chattanooga Employees
Erlanger Health System 7,870
TOTAL POPULATION AVG. HOME VALUE AVG. HOUSEHOLD INCOME BlueCross BlueShield of Ten- 5,193
91,509 $252,597 $80,778 nessee
Hamilton County Department of 4,674
Education
Tennessee Valley Authority 3,501
Population Summary 1 Mile1 3 Miles 5 Miles
2010 Total Population 4,293 30,655 84,007 3,100
McKee Foods Corporation
2020 Total Population 4,707 33,864 91,509
2025 Total Population 5,074 35,598 96,033
Unum 2,800
2020-2025 Annual Rate 1.51% 1.00% 0.97%
Average Household Income Volkswagen Chattanooga 2,407
2020 $66,796 $80,881 $80,778
2025 $69,991 $86,011 $87,635 CHI Memorial 2,407
Average Home Value
2020 $203,669 $237,254 $252,597 City of Chattanooga 2,308
2025 $217,454 $264,294 $278,468
Roper Corporation 1,900
PRESERVE WEST CAPITAL | 9BUILDING CAPITAL WITH CONFIDENCE Putnam Daily Vahe Nokhoudian Michael Maffia Lizz Kabat Partner Associate Managing Partner Kabat Real Estate Solutions 415.445.5107 415.445.5122 415.373.4060 615.410.1114 putnam@preservewc.com vahe@preservewc.com mike@preservewc.com lizz@kabatres.com CA RE License #01750064 CA RE License #01963342 CA RE License #01340853 TN RE License #258073
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